Janice Lozano
International students in the United States who are not eligible for a Social Security Number (SSN) can apply for an Individual Taxpayer Identification Number (ITIN) to report any non-wage income when filing taxes. An ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) for those who pay taxes but are ineligible for an SSN. It is typically required for international students who receive grants, fellowships, or scholarships. The application process for an ITIN involves submitting relevant documents to the IRS, and the processing time can take around six to eight weeks.
| Characteristics | Values |
|---|---|
| Who needs an ITIN? | International students, scholars, faculty, or staff who are non-residents for U.S. tax purposes and are not eligible for a Social Security Number (SSN). |
| When to apply for an ITIN? | If you have U.S. source income but are not eligible for an SSN. |
| How to apply for an ITIN? | Submit Form W-7 or Form W-7 (SP) (in Spanish) to the Internal Revenue Service (IRS). |
| What is an ITIN used for? | Filing taxes, applying for U.S. financial products like bank accounts and credit cards. |
| Can an ITIN be used for work authorization? | No, an ITIN does not grant work authorization. An SSN is required for employment. |
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What You'll Learn
International students with F-1, J-1, M-1, or Q-1 non-immigrant status
F-1, J-1, M-1, or Q-1 non-immigrant students who have received taxable scholarships, grants, or fellowships may need an ITIN. This is because, while an SSN is required for employment, an ITIN is needed to report non-wage income when filing taxes. Examples of non-wage income include scholarships, grants, and fellowships. Students who have received non-service fellowships (no work required) and are not eligible for an SSN may need to apply for an ITIN.
To apply for an ITIN, F-1, J-1, M-1, or Q-1 non-immigrant students must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number", with a U.S. tax return. Students should be aware that the ITIN application process can take several months during peak tax processing times (March and April). Additionally, students should not send original documents to the IRS and should instead submit certified copies of these documents.
While an ITIN is necessary for filing taxes, it does not grant work authorization. International students with F-1, J-1, M-1, or Q-1 non-immigrant status must first obtain work authorization and then use that to apply for an SSN before starting work.
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Applying for an ITIN with a U.S. fellowship or scholarship
International students and scholars in F-1, J-1, M-1, and Q-1 non-immigrant status are typically eligible for employment in the United States and can apply for a Social Security Number (SSN) if they are employed. However, those who are ineligible for an SSN or do not meet the Social Security Administration's requirements can apply for an Individual Taxpayer Identification Number (ITIN). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who need to report income but cannot obtain an SSN. This includes non-resident international students who receive taxable scholarships, fellowships, or grants.
To apply for an ITIN, international students with a U.S. fellowship or scholarship must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," along with a U.S. tax return. They may also need to provide supporting documents, such as a copy of their scholarship or fellowship letter, and complete an online request for an ITIN support letter from their educational institution's international student services office. This letter is typically required for students receiving scholarships or fellowships from their institution.
It is important to note that international students with taxable income, including scholarships exceeding the cost of tuition and fees, must file a tax return. If the student is employed or intends to start working soon, they should apply for an SSN instead of an ITIN. Additionally, students should review the IRS "U.S. Tax Treaties" publication to determine if they are eligible for any tax treaty benefits before proceeding with their ITIN application.
The process for applying for an ITIN with a U.S. fellowship or scholarship involves several steps, and students should carefully review the requirements and gather the necessary documentation to ensure a smooth application process. It is also recommended to stay updated with any changes in IRS requirements, as they may impact the application process.
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ITINs for international students with dependents
International students and scholars who are treated as nonresident aliens for US tax purposes may be required to file a US income tax return if they have US-source income. If they are not eligible to apply for a US Social Security Number (SSN) or do not meet the Social Security Administration's evidence requirements for an SSN, they may apply for an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS). This includes F-1, J-1, M-1, and Q-1 nonimmigrant students who are eligible for employment in the US but are not employed and therefore cannot obtain an SSN.
To apply for an ITIN, international students must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a US tax return. They may also need to submit proof of identity and foreign status documents, such as a passport or certified copy of a visa stamp. The IRS provides three options for applying for an ITIN: mailing the required documents to the IRS, applying in person through an IRS-authorized Certifying Acceptance Agent, or using an online platform such as GLACIER Tax Prep, which is offered free of charge by some universities.
Dependents of international students or scholars who are not eligible for SSNs can also apply for ITINs. To include them in the US tax return, the primary applicant must submit Form W-7 for their dependents to the IRS, along with the dependents' original documents or certified copies. It is strongly recommended not to send original documents to the IRS. Instead, applicants can visit an IRS Taxpayer Assistance Center for in-person document review or submit copies of original documents certified by the issuing agency.
The IRS typically assigns an ITIN within seven weeks of receiving a complete application. However, during peak tax processing times (March and April), the process can take much longer, sometimes even months. It is important to plan ahead and apply for an ITIN well in advance to avoid delays in receiving the ITIN and potential difficulties in filing tax returns.
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How to apply for an ITIN as an international student
International students can apply for an Individual Taxpayer Identification Number (ITIN) if they need to report non-wage income, such as scholarships, grants, fellowships, dividend payments, and capital gains, but are not eligible for a Social Security Number (SSN) because they are not working.
Step 1: Check Eligibility
Before applying for an ITIN, international students should first confirm their eligibility. As mentioned, ITINs are typically for those who need to report non-wage income but do not have an SSN. If you are employed or plan to start working soon, you should apply for an SSN instead of an ITIN.
Step 2: Gather Required Documents
The key document you need to apply for an ITIN is Form W-7, "Application for IRS Individual Taxpayer Identification Number." This form can be found on the IRS website. Additionally, you may need supporting documents, such as a passport, visa (F-1 or J-1), and other relevant documentation. Check the IRS website or consult with your university's international student office to ensure you have all the necessary paperwork.
Step 3: Complete and Submit the Application
Once you have gathered all the required documents, complete Form W-7 and submit it to the IRS. You can mail your application to the IRS address provided on the website, or you may be able to submit it online, depending on your situation.
Step 4: Wait for Processing
The IRS typically takes around 7-11 weeks to process ITIN applications, but it could take up to 2-3 months. Once your application is approved, you will be notified via email or through the InterLink system, if your university uses it.
Step 5: Receive Your ITIN
After your application is approved, you can pick up your ITIN letter from your university's international student office or the designated location specified by the IRS. With your ITIN, you can now file your taxes and explore other benefits, such as applying for U.S. financial products like bank accounts and credit cards.
It is important to plan ahead and apply for your ITIN as early as possible, especially if you need to file taxes by the deadline in April. Additionally, keep in mind that you can apply for an ITIN at any time of the year when you have a tax filing requirement.
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Using an ITIN to access U.S. financial products
International students who are not eligible for a U.S. Social Security Number (SSN) can apply for an Individual Taxpayer Identification Number (ITIN) if they have a valid tax reason for needing one. An ITIN enables non-residents to file a tax return if they have taxable income, such as a scholarship, but are not eligible for an SSN.
An ITIN can be used to open a bank account in the U.S., which is an important step towards financial stability and security. Many banks and credit unions accept ITINs as a form of identification, and some offer products specifically designed for the immigrant community. For example, Latino Credit Union in North Carolina accepts ITINs, and offers DACA and citizenship loans to help members cover the costs of a naturalization application.
Opening a bank account with an ITIN can also help with other important financial tasks, such as opening a credit card, buying a home, or borrowing funds to start a business. These actions can help establish a credit history, which is an important part of building a financial foundation in the U.S.
Additionally, an ITIN can be used to access online banking services, which provide a convenient and often free way to manage your money. For example, Wise is a regulated online account that gives you access to cheap money transfers and a debit card, and you can open an account with an ITIN or passport instead of an SSN.
It's important to note that not all banks accept ITINs, and identification requirements vary, so it's best to check with individual institutions before applying for an account.
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Frequently asked questions
International students, scholars, faculty, or staff who have U.S. source income but are not eligible for a Social Security Number (SSN) will need an Individual Taxpayer Identification Number (ITIN) to fill out tax forms.
If you are filing your ITIN application during peak tax processing times (March or April), the process can take months. It is recommended that you apply for your ITIN as soon as possible.
To apply for an ITIN, an F or M student must submit a Form W-7, “Application for IRS Individual Taxpayer Identification Number”, with a U.S. tax return. You can check the status of your application by calling the IRS at 1-800-829-1040.
An ITIN allows you to file taxes and access certain U.S. financial products and services, such as applying for a bank account or credit card.
